A personal loan extends a helping hand during emergencies by providing immediate liquidity. Personal loans are unsecured, so you do not need to pledge a collateral for availing them. This also makes them an ideal choice for arranging funds to meet financial needs arising out of requirements such as home renovation or health emergencies.
When you apply for a loan, the lender checks your creditworthiness as well as your eligibility for the loan. In case you are planning to take a personal loan, here are quick pointers to know if you are eligible.
What Is Your Age?
A personal loan is sanctioned typically to individuals between the age of 21 and 61 years. An individual nearing retirement may find it tough to avail a personal loan. Lenders seek proof of income. Anyone with regular income such as a monthly salary income will find it easy to avail a personal loan.
How Much You Earn And Job Stability
Lenders offer loan to people who have a stable job with regular income. The loan amount you will be eligible to receive will be decided after taking your current salary into account. The higher the salary, the higher can be your loan eligibility.
What Is Your Credit Score?
A credit score is a three-digit number that reflects an individual’s creditworthiness through an evaluation of his credit history. It is compiled by credit rating agencies such as Experian and CIBIL. Lenders look your credit score when you apply for a loan, as it provides them a clear picture of how you’ve managed credit in the past. They assess if you’ll be able to repay this new loan on time. Usually, a credit score ranges between 300 and 850. The higher your score, the better your chances of you getting the loan. You can maintain a healthy credit score by repaying all your loan EMIs and credit card bills on time.
Before taking a personal loan, ensure you understand all the terms and conditions, compare your options properly, and be sure of repaying your dues on time.